Busy earnings day, Meta reportedly prepares AI chatbot - what's moving markets

investing.com:

Investing.com — Investors are preparing to sift through a deluge of corporate results on Tuesday from big-name brands like Merck, Starbucks and Caterpillar . Meanwhile, Facebook-owner Meta Platforms is reportedly gearing up to launch a new artificial intelligence chatbot that can take on the personas of different characters. Elsewhere, a bright pulsating sign on the roof of the headquarters of Elon Musk's newly-renamed social media group X is taken down after sparking controversy with local residents.

1. Futures inch lower

U.S. stock futures edged under the flatline on Tuesday as a new month of trading begins with a stream of corporate earnings set to be released.

By 05:16 ET (09:16 GMT), the Dow futures contract slipped by 97 points or 0.27%, S&P futures lost 12 points or 0.25%, and Nasdaq 100 futures dipped by 48 points or 0.30%.

The main indices closed out July in the green, with the benchmark S&P 500 jumping by 3.1% during the month after the close of dealmaking on Monday. It was the index's fifth straight month of gains — the longest such streak since 2021. The Dow Jones Industrial Average also climbed by more than 3% in July, while the tech-heavy Nasdaq Composite added around 4.1%.

Emerging signs of cooling inflation, resilient economic activity, and expectations that the Federal Reserve may soon back away from an aggressive campaign of interest rate hikes have combined to help underpin a wide-spread rally in stocks. The second-quarter earnings season, meanwhile, has featured stronger-than-expected results from a host of major companies.

2. Busy earnings week kicks into gear

A rush of corporate returns is due out on Tuesday, accelerating the pace of a busy week that will see more than 160 S&P constituent firms